This module allows you to analyze existing cross correlation between Kraken Monero USD and HitBTC DigitalCash USD. You can compare the effects of market volatilities on Kraken Monero and HitBTC DigitalCash and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kraken Monero with a short position of HitBTC DigitalCash. See also your portfolio center. Please also check ongoing floating volatility patterns of Kraken Monero and HitBTC DigitalCash.

Kraken

Monero on Kraken in USD

210.58

15.15

7.75%

Market Cap: 646.2 M

HitBTC

DigitalCash on HitBTC in USD

395.53

12.01

3.13%

Market Cap: 862 M

Performance (%)

Timeline

Pair Volatility

Assuming 30 trading days horizon, Kraken Monero USD is expected to generate 1.36 times more return on investment than HitBTC DigitalCash. However, Kraken Monero is 1.36 times more volatile than HitBTC DigitalCash USD. It trades about -0.17 of its potential returns per unit of risk. HitBTC DigitalCash USD is currently generating about -0.36 per unit of risk. If you would invest 32,150 in Kraken Monero USD on February 17, 2018 and sell it today you would lose (11,092) from holding Kraken Monero USD or give up 34.5% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Kraken Monero and HitBTC DigitalCash

0.88

Parameters

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Kraken Monero USD and HitBTC DigitalCash USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC DigitalCash USD and Kraken Monero is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kraken Monero USD are associated (or correlated) with HitBTC DigitalCash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC DigitalCash USD has no effect on the direction of Kraken Monero i.e. Kraken Monero and HitBTC DigitalCash go up and down completely randomly.